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Zip Code 47016: Cedar Grove's Shifting Home Values and Ownership Trends
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
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Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Cedar Grove, located in zip code 47016 in Indiana, is a small community with a population of 1,255 as of 2022. This area has experienced fluctuations in homeownership rates and average rent prices over the past decade, reflecting broader economic trends and local market dynamics.
The homeownership rate in Cedar Grove has shown a general decline from 2013 to 2022, with some fluctuations. In 2013, the homeownership rate was 85%, which decreased to 79% by 2022. This overall downward trend in homeownership coincided with variations in average rent prices. The average rent price increased significantly from $836 in 2013 to $1,193 in 2015, representing a 42.7% increase. However, it then decreased sharply to $574 in 2017, a 51.9% drop, before gradually rising to $710 in 2022.
When examining the relationship between federal interest rates and homeownership rates, we observe that the period of historically low interest rates from 2013 to 2021 did not consistently correspond with higher homeownership rates in Cedar Grove. For instance, despite interest rates remaining below 0.5% from 2013 to 2016, the homeownership rate dropped from 85% to 81% during this period. This suggests that other local factors may have had a stronger influence on homeownership trends in this specific area.
The percentage of renters in Cedar Grove has generally increased from 2013 to 2022, inversely mirroring the homeownership trend. The renter population grew from 15% in 2013 to 20% in 2022, with a peak of 26% in 2020. Interestingly, this increase in renters did not consistently correlate with rising average rent prices. For example, while the renter percentage increased from 15% in 2013 to 24% in 2018, the average rent price actually decreased from $836 to $610 during the same period, suggesting that factors other than rent prices were driving the shift towards renting in this community.
As of 2024, the average home price in Cedar Grove stands at $312,869, reflecting the current market conditions. This figure represents a significant data point for potential homebuyers and investors in the area. The federal interest rate as of 2024 is 5.33%, which is notably higher than the rates observed in the previous decade. This increase in interest rates may impact affordability and could potentially influence future homeownership trends in the area.
Looking ahead, predictive models suggest that average home prices in Cedar Grove may continue to rise moderately over the next five years, potentially reaching around $340,000 by 2029. Average rent prices are also expected to increase, albeit at a slower pace, potentially reaching approximately $800 per month by 2029. These projections are based on historical trends and current market conditions but may be influenced by various economic factors and local developments.
In summary, Cedar Grove has experienced a gradual shift from homeownership to renting over the past decade, despite fluctuations in average rent prices. The relationship between interest rates and homeownership in this area appears complex, with local factors potentially playing a significant role. The current average home price and higher interest rates in 2024 may influence future housing market dynamics. As the community continues to evolve, monitoring these trends will be crucial for understanding the local real estate landscape and making informed decisions about housing in zip code 47016.
